With timing being the subject of the first article in our
COVID-19 economic loss quantification series, it seems fitting that
it is the issue that wraps up the series. I first discussed timing
in the context of assisting clients attribute losses between a
primary event (such as some tortious or negligent act) and the
intervening event, in this case, COVID-19. In this article, I
reflect on the risks and evidentiary challenges associated with
determining the date on which the economic losses cease.
The uncertainties in an economic loss claim affected by an
intervening event are, on balance, more likely to decrease as the
period of time passes. This is simply because the passing of time
allows us to understand how the business actually adapted to the
intervening event and reliable information critical to the loss
calculation becomes available. Let me explain by using the
following example:
